Women's wages still lower than men's

In August 2003, the Danish Confederation of Trade Unions (LO) and the Danish Employers' Confederation (DA) published a joint analysis of the wages of women and men. It is the most comprehensive study to date of the causes of gender differences in wages in Denmark, quantifying a number of factors which have a decisive impact in this area. The study finds that the average gender wage gap (to women's disadvantage) is 14%-15% among blue-collar workers and 19%-20% among white-collar workers. DA and LO are in agreement about the study's findings, but disagree as to what should be done in future to remedy the situation.

On 21 August 2003, the Danish Confederation of Trade Unions (Landsforeningen i Danmark, LO) and the Danish EmployersaeuroTM Confederation (Dansk Arbejdsgiverforening, DA) published a joint analysis of male and female wages. The analysis ([Kvinder og MA|nds LA¸n](http://www.da.dk/bilag/Kvinders og maend løn_2003_NY netversion.pdf)) is the most comprehensive study yet conducted of the causes of gender-related wage gaps in Denmark. It quantifies a number of factors which have a decisive impact upon earnings and maps out the contribution of these different factors to the substantial differences between menaeuroTMs and womenaeuroTMs earnings. The factors examined are: work function; education/training; occupational sector; work experience; changes between jobs; leave periods; geographical location; and children.

The study finds that among blue-collar workers, men's wages are on average 14%-15% higher than those of women. In this group, the factors analysed account for 11 percentage points of the gender difference, while 3-4 points are attributable to other causes than those measured in the analysis. Among white-collar workers, men's wages are on average 19%-20% higher than those of women. In this groups, 12 percentage points of the difference can by accounted for by the factors analysed, while about 7 points are attributable to other causes.

Gender-segregated labour market causes unequal pay

The study finds that the most important cause of the wage gaps observed between men and women is the gender-segregated labour market - ie the fact that men and women tend to work in different occupational sectors and to a large extent have different work functions. Men thus, for example, to a greater extent work as unskilled workers or craftspeople in the building and construction sector, while women to a greater extent work as cleaners or unskilled/skilled shop assistants in the service sector. The gender-segregated labour market is also a consequence of the fact that men and women often work in different functions. For example, women more often work in secretarial functions while men more typically work in technical or information technology functions. Among blue-collar workers, the gender-segregated labour market is found to account for just over half of the observed gender wage differential, while it accounts for just over 25% among white-collar workers.

In addition, differences in educational/training levels and the choices in this area of men and women also contribute to explaining the wage gaps. Women have over the past two decades obtained a higher educational/training level, but they have not yet reached the level of men. At the same time, women continue to be educated and trained in commercial and clerical sectors, while men more typically complete education/training in the fields of crafts and technical occupations. The choice of education is taken before entry into the labour market but, nevertheless, it has an impact on the differences observed in average male and female wages.

Consensus over findings

LO and DA expressed satisfaction with the study and also, to a large extent, agree on the findings of the analysis.

JA¸rn Neergaard Larsen, the managing director of DA, has expressed satisfaction with the joint statistical basis which has now been created for continued work on creating a more equal labour market: 'Although Danish women are now economically active on the labour market to the same extent as the men, we have not been very successful in reducing the gender gap. It is, for instance, annoying to see that in spite of more than 20 yearsaeuroTM debate, menaeuroTMs and womenaeuroTMs occupational choices are as distorted today as they were in the early 1980s.'. Hans Jensen, the president of LO, stated that there is a need to take a closer look at the barriers of a financial, sociological or psychological nature which seem to exist on the labour market in relation to menaeuroTMs and womenaeuroTMs occupational choices.

Both DA and LO point to maternity and parental leave as a problem. LO wants leave for fathers aeuro" which is optional under the current legislation (DK0202104F) aeuro" to be made compulsory. The length of the leave period for men is a matter which could be the subject of negotiations. In principle, DA agrees that more fathers should take leave with a view to promoting womenaeuroTMs career opportunities and thus their access to higher wages, but the employers' organisation still believes that this should be a matter left to individual families to decide.

Commentary

Certain things never seem to change aeuro" irrespective of various attempts to alter them. Unequal pay for men and women seems to be one such issue. The LO/DA analysis confirms former analyses of pay gaps between men and women. A study (LA¸nforskelle mellem mA|nd og kvinder, 2000) carried out in 2000 by the National Institute for Social Research (Socialforskningsinstituttet, SFI), commissioned by the Ministry of Labour (now the Ministry of Employment), drew the same conclusions (DK0006182F) - ie about a quarter of the gender wage differential cannot be accounted for objectively. At that time, the legislation on equal pay for women and men was celebrating its 25th anniversary aeuro" but no major changes in the wage gap had taken place during this period. This is still the situation three years later. The SFI study led to the tabling of a bill by the Minister of Labour which would have obliged enterprises to produce wage statistics broken down by gender, with a view to making differences more transparent and helping tackle them (DK0106123N). The legislation had not yet been adopted when the new coalition government of the Liberal Party (Venstre) and the Conservative People's Party (Det Konservative Folkeparti) came to office in November 2001 and postponed the law for an indefinite period (DK0206101N).

Although LO and DA are agreed about most of the results of their joint study, they disagree on how to tackle the problem of unaccounted-for causes of gender inequalities in remuneration. LO is pressing to revive the bill on gender wage statistics, so that further data will be available. DA disagrees and sees the bill as completely superfluous. According to DA, the bill would lead only to an unnecessary administrative burden and perhaps to wage drift, including for men.

It is not a given that the solution to the problem should be found in the enterprises. The authors of the 2000 SFI report stated that wage statistics broken down by gender would focus on menaeuroTMs and womenaeuroTMs jobs in enterprises, while answers to the question of the continued existence of discrimination may very well be found elsewhere. The basis of discrimination should perhaps be sought at an earlier stage, in the choices of education and occupation made by women and men, which are the result of broader social influences. This is why the current Minister for Gender Equality has set up a committee which is to come up with proposals on how to change menaeuroTMs and womenaeuroTMs still very traditional occupational choices. (Carsten JA¸rgensen, FAOS)